Government plays up tax split between FG and Labour

THE apparent policy gap between the alternative Government partners on taxation was pounced upon by Fianna Fáil and the Progressive Democrats yesterday.

Fine Gael deputy leader Richard Bruton admitted yesterday that he was opposed to the Labour Party’s proposal to increase Capital Gains Tax. Minister for Justice, Michael McDowell, queried if Fine Gael was willing to negotiate with Labour on its plan to double CGT to 40%, but Mr Bruton said he was not in favour of that policy.

“I oppose the idea of increasing Capital Gains Tax but that is not to say that I would go along with what the Government has done. The huge profits from development of land now have the lowest tax rate,” he said.